BMO Capital Markets has adjusted its outlook on shares of Apollo Global Management (NYSE: NYSE:APO), increasing the price target to $138 from $123, while keeping an Outperform rating on the stock.
The revision follows Apollo's Investor Day, where the firm outlined a strategy to potentially more than double its earnings over the coming five years.
The investment firm's shares have been identified by BMO Capital as offering growth at a reasonable multiple, with the stock currently trading at 17 times earnings.
BMO Capital's assessment suggests confidence in Apollo's conservative targets for originations, which are considered the "lifeblood of our business."
Apollo Global Management's broader asset sourcing capabilities were also highlighted as a supportive factor for the company's growth projections.
The raised price target reflects the firm's positive view of Apollo's future performance and their position as a top pick in the alternative asset manager space.
In other recent news, Apollo Global Management has seen several key developments. Wells Fargo and JPMorgan have both maintained an Overweight rating on Apollo Global, raising their price targets to $148.00 and $143.00 respectively.
This follows Apollo's investor day where new targets for 2029 were set, including a 20% average fee-related earnings growth and a 10% average strategic real estate growth over the next five years.
Goldman Sachs also maintained its Buy rating on Apollo Global, with a steady price target of $135.00, citing the firm's five-year financial targets and competitive edge in the alternative asset management sector.
TD Cowen reiterated a Buy rating on Apollo shares, projecting about $15.00 in after-tax net income for the year 2029, driven by quicker than expected growth in fee-related earnings. Barclays analysts also maintained an Overweight rating on Apollo, while Wolfe Research recently initiated coverage with an Outperform rating.
In addition, Apollo has proposed a significant investment of up to $5 billion in Intel (NASDAQ:INTC) and initiated a strategic financing and capital markets collaboration with BNP Paribas (OTC:BNPQY), which committed an initial $5 billion in financing. Lastly, Apollo established a $25 billion private credit and direct lending program in partnership with Citigroup Inc (NYSE:C).
InvestingPro Insights
Apollo Global Management's (NYSE:APO) recent investor day presentation and BMO Capital's bullish outlook are further supported by real-time data from InvestingPro. The company's market capitalization stands at an impressive $75.18 billion, reflecting its significant presence in the financial services industry.
Apollo's P/E ratio of 14.19 suggests that the stock may be undervalued compared to BMO Capital's assessment of it trading at 17 times earnings. This discrepancy could indicate potential upside for investors, aligning with BMO's increased price target.
InvestingPro Tips highlight Apollo's strong financial position. The company has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the firm's ambitious growth plans outlined during the investor day. Additionally, Apollo's liquid assets exceed short-term obligations, indicating a healthy balance sheet that could support its expansion strategy.
The stock's recent performance has been robust, with a 14.07% price total return over the past month and a 49.85% return over the last year. This momentum is reflected in the stock trading near its 52-week high, with the current price at 99.22% of that peak.
Investors seeking more comprehensive analysis can access additional InvestingPro Tips, with 12 tips available for Apollo Global Management on the platform.
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